By Emily Bary
Netflix, Roku, GrubHub among other declining tech names
Shares of technology stocks that saw big benefits from stay-at-home trends due to the pandemic are falling in morning trading Monday given upbeat vaccine news from Pfizer Inc. and BioNTech SE.
Zoom Video Communications Inc. (ZM) and smart exercise equipment brand Peloton Interactive Inc. (PTON) are among the biggest losers in Monday's session, with Zoom's stock down more than 17% and Peloton's off more than 20%. The declines come after Pfizer (PFE) and BioNTech (BNTX) announced that their COVID-19 vaccine candidate was found to be more than 90% effective ( ) in preventing COVID-19, which is sparking a strong rally for the broader market ( ) amid hope that the vaccine can prompt a return of normal economic activity.
The Dow Jones Industrial Average is up 1290 points, or 4.4%, while the S&P 500 is up 112 points, or 3.2%. The Nasdaq Composite Index is up 108 points, or 0.9%.
Other tech names struggling in Monday's trading include Etsy Inc. (ETSY), down nearly 19%, GrubHub Inc. (GRUB), down about 10%, and Netflix Inc. (NFLX) down almost 8%. Etsy has seen strong demand for homemade masks, while GrubHub benefitted from rising interest in takeout orders given limited seating capacity at restaurants. Netflix was able to capitalize on a dearth of other entertainment options as the pandemic forced movie theater closures, production halts and sports cancellations.
Elsewhere in streaming, Roku Inc. (ROKU) shares are off more than 11%.
Shares of PayPal Holdings Inc. (PYPL), another big winner during the pandemic, are off 6.8%. The COVID-19 crisis helped drive record performance for PayPal as more people shopped online and looked for digital ways to pay friends, service workers and charities.
Video game stocks are also down. Shares of Activision Blizzard Inc. (ATVI) are off 5.9%, shares of Electronic Arts Inc. (EA) are off 4.6%, and shares of Take-Two Interactive Software Inc. (TTWO) are down 9.2%. Like Netflix, the video game industry also benefitted from greater interest in forms of entertainment that could be enjoyed within the home.
The software sector is taking a beating, with Okta Inc.'s stock (OKTA) down 7.7%, DocuSign Inc.'s stock (DOCU) down 8.8%, and Atlassian Corp. PLC's stock (TEAM) down 3.8%. Okta makes software that enables people to more easily sign into enterprise applications. DocuSign lets people and businesses collect signatures on legal documents electronically, and Atlassian makes online collaboration tools like Trello.
On the flip side, tech names exposed to an out-of-home rebound are surging. These include online-ticketing company EventBrite Inc. (EB), which has seen its shares rocket 36% in morning trading. Shares of Uber Technologies Inc. (UBER) and Lyft Inc. (LYFT) are up 7% and 21%, respectively, as a vaccine could make people more comfortable taking ride-hailing trips.
Online-travel stocks are seeing a sharp rebound, with TripAdvisor Inc. (TRIP) and Expedia Group Inc. (EXPE) shares each up 21%. Shares of Booking Holdings Inc. (BKNG), which has more international exposure, are up 15%.
Shares of Yelp Inc. (YELP), which is exposed to the local-business landscape, are up nearly 22%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
November 09, 2020 10:28 ET (15:28 GMT)
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